Last updated: April 2026
Quick Guide
Background
To implement this change, starting in FY26, the Schools and the College received block grants (a set amount of central funding) for their graduate students’ RA tuition subsidy. FY26 block grants are 4% lower than FY25 RA tuition subsidy levels and will be gradually reduced further through FY28 to achieve central budget relief. The Schools, College, and DLCIs are allocating funds from their block grants and applying local graduate student resources to support the RA tuition subsidy in line with the following Institute principles:
- PIs will receive a 55% tuition subsidy for all sponsored funds.
- PIs will receive the 55% tuition subsidy on gifts and other non-sponsored funds they bring in.
- Institutional programs that use gifts, central funding (including presidential initiatives, corporate gifts, and startup packages), or other School, College, or department-level non-sponsored funding will budget full tuition.
- Existing gifts and startup funds will continue to honor the 55% tuition subsidy.
- Deans can approach the Provost about special cases.
The Provost, EVPT, and Deans will re-evaluate these changes at the end of FY28.
This FAQ addresses administrative questions about the RA tuition subsidy block grants. While adhering to the Institute-wide principles, the Schools and the College may develop certain local guidelines due to their unique financial circumstances. For questions specific to your School or the College, please contact your Dean’s Office.
FAQ
Why are we using a block grant model?
MIT is facing significant new recurring financial burdens, including an increased tax on our investment returns and reductions in federal research funding. These central budget stresses require changes to the way we operate. The block grant approach enables MIT to remain competitive in attracting the best faculty and graduate students while allowing our central budget to continue supporting significant portions of faculty and staff compensation, student financial aid, and capital improvements in the face of these headwinds.
The block grant model will provide relief to the central budget by having the Schools, the College, and departments combine their centrally funded block grant with local resources to maintain the RA tuition subsidy without requiring new PI contributions.
How will the block grants be distributed?
The block grant allocations will be distributed to the Dean’s Offices of each School/College. The Dean’s Offices will then distribute the allocations to academic units that process RA appointments. The Schools and College may elect to provide funds to the unit accounts based on actuals, or provide allocated amounts ahead of the term.
How will the block grants be allocated to the Schools/College?
FY26 allocations were determined based on FY25 actuals charged to the RA tuition subsidy accounts across the Schools and College with the prescribed Institute-wide reduction applied proportionally. As was the case in FY26, FY27 support will be issued through non-base GIB allocations for each of the Dean’s Offices to administer from new School/College-level cost centers under the existing RA admin flag. This allocation will reflect FY27 tuition rate increases. For FY28, the allocations are planned to be hardened into the base budgets of the Schools/College and the allocations will be adjusted for annual tuition rate increases.
For students who are admitted to an academic unit and receive support from another unit, how should this student be supported?
If the student is supported by sponsored research, the academic unit that admitted the student should provide the tuition subsidy from the block grant cost object for sponsored funds.
If the student is supported by non-sponsored funds, the faculty supervisor or local administrators should follow School/College guidelines in line with Institute practices.
Is summer tuition part of the block grant?
No, summer tuition for thesis-enrolled graduate students will be unaffected and will remain processed directly from the GIB.
Will the MIT Student Health Insurance Plan (SHIP) remain subsidized?
Yes. The MIT Student Health Insurance Plan (SHIP) is unaffected by the change on the tuition subsidy for non-sponsored cost objects. Starting in the fall of FY27, DLCIs should charge RA SHIP to cost center #1781601.
If I need to change an RA distribution between sponsored and non-sponsored funding sources, should I cancel the original appointment?
No, the allocation should be updated in GAP or eSDS. As implemented with the CBA, RA appointments should only be cancelled when there is a change in the total effort for the student’s appointment. Please refer to the Graduate Student Appointment Guidelines. When changing the appointment, you will need to update the tuition subsidy allocation in accordance with School/College guidelines.
How will this change the practice of using RA tuition as cost sharing?
The tuition subsidy will not change as a source of cost sharing. Cost sharing occurs on sponsored research awards; therefore, the sponsored research tuition subsidy cost objects should be referenced.
Which tuition subsidy account should I use for a student appointment on my DLCI’s suspense account?
Please follow your School/College guidelines to determine how sponsored/non-sponsored appointments should be handled in cases of suspense.
My department doesn’t typically subsidize tuition on some of our non-sponsored cost objects; will the block grant change this practice?
No. If it is the current practice, the DLCI should continue charging full tuition to gifts and other local cost objects. This practice should be applied in a manner consistent with Institute guidance that gifts PIs bring in continue to receive the 55% tuition subsidy, while institutional programs using gifts or central funding should budget full tuition moving forward.
I’m entering an appointment for a student with an NIH Training Grant shortfall. How should the shortfall be processed for this appointment?
The shortfall for students on NIH Training Grants has historically been covered by the RA tuition subsidy. Please use the sponsored block grant cost object in your department.
Can Deans request exceptions to the RA tuition subsidy policy?
Yes. Deans can raise special cases with the Provost.